MIRA INFORM REPORT

 

 

Report Date :

08.10.2013

 

IDENTIFICATION DETAILS

 

Name :

THE PEKAY GROUP (PTY) LTD 

 

 

Formerly Known as:

PEKAY CHEMICALS (PTY) LTD

 

 

Registered Office :

24 Fulton Street , Industria West, Johannesburg, Gauteng 

 

 

Country :

South Africa

 

 

Date of Incorporation :

16.03.1959

 

 

Com. Reg. No.:

1959/000823/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturers of adhesives and coatings, paints, sealants and waterproofing compounds, brands being PEKAY, BOSTIK, JAYCO and ADMAC

 

 

No. of Employees :

±200 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No Complaints 

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

South Africa

A2

A2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

South Africa ECONOMIC OVERVIEW

 

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. State power supplier Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

 

Source : CIA

 

 


ATTENTION:

The information contained in this report, other than statutory data and comment by outside authorities, has been voluntarily supplied by officials of the subject):

 

 

COMPANY NAME

 

THE PEKAY GROUP (PTY) LTD

Formerly: PEKAY CHEMICALS (PTY) LTD the name having been changed on 23 October 1996

 

 

TRADING BRANDS

 

·         JAYCO SEALANTS

·         ADMAC HOTMELT AND EQUIPMENT

·         PEKAY ADHESIVES AND COATINGS

·         BEARDOW ADAMS (sole South African distributor)

·         BOSTIK (licenced manufacturer)

 

PHYSICAL ADDRESS

 

24 Fulton Street

INDUSTRIA WEST

Johannesburg

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 43116

INDUSTRIA

2042

TELEPHONE NUMBER:            +27 11 309 1500

FAX NUMBER:                          +27 11 474 8170

 

 

SHAREHOLDERS

 

100% A Z PEKAY FAMILY TRUST in which A Z POKLEWSKI-KOZIELL (Polish) is a Trustee.

 

The Shareholding was previously 100% A Z POKLEWSKI-KOZIELL, having changed in November 2006

 

The Shareholding was formerly A Z POKLEWSKI-KOZIELL (majority), D W ROBERTSON, H REID, G VAN

STADEN, G WALKER and A T LOWE. H REID and A T LOWE have since died.

 

A Z POKLEWSKI-KOZIELL bought all of the minor shareholders out with effect from 28 February 2007.

 

 

ASSOCIATE COMPANIES

 

PEKAY CHEMICALS COAST (PTY) LTD (dormant)

ADHESIVE & CHEMICALS SALES (PTY) (dormant)

POKLEWSKI PROPERTIES (PTY) LTD, which is owned by the POKLEWSKI-KOZIELL family (property owning company)

PEKAY CHEMICALS (ZIMBABWE) PVT LTD (registered in Zimbabwe)

PEKAY CHEMICALS (BOTSWANA) (PTY) LTD (registered in Botswana)

 

DIRECTORS

 

G N BROMHEAD ID No. 5111195102082

A Z POKLEWSKI-KOZIELL (Chairman) ID No. 5410085074082

D W ROBERTSON (MD) ID No. 4811185018088

 

BANKERS

 

STANDARD BANK, Industria Branch, Account Number: 002440628. It was stated that the subject enjoys overdraft facilities to an extent of R3 000 000, secured by a cession of debtors as well as shareholders guarantees. Utilisation of the overdraft is stated to be nil.

 

DATE REGISTERED

 

16 March 1959

Registration Certificate Number: 1959/000823/07

The subject commenced as a new business

 

 

VAT NUMBER

 

4450103496

 

 


TAX NUMBER

 

9465040849

 

 

MAJOR OPERATION

 

Manufacturers of adhesives and coatings, paints, sealants and waterproofing compounds, brands being PEKAY, BOSTIK, JAYCO and ADMAC

 

 

MAJOR SUPPLIERS

 

The subject imports raw materials from Taiwan, India and Germany and deals locally with:

 

SHELL CHEMICALS

CHEMPRO Johannesburg

PREMIER FREIGHT Johannesburg

MAKEEN POLYMERS Pretoria

CARST & WALKER Johannesburg

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Building, flooring and construction industry as well as hardware stores, mines and government departments.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Malawi, Hong Kong, Mauritius, Botswana, Zimbabwe, Taiwan and Ghana

 

 

TOTAL EMPLOYEES

 

 ±200 employees

 

OTHER PREMISES

 

The subject is reported to have branches in Pretoria, Pinetown, Port Elizabeth, Cape Town, Bloemfontein, Nelspruit, and 2 branches in Johannesburg as well as an agent in East London.

 

 

OWNED OR LEASED

 

The premises in Johannesburg, Port Elizabeth, Pinetown and Cape Town are reported to be owned by the associate property owning company, bonded in favour of STANDARD BANK. The remainder of the premises are reported to be leased.

 

The respondent stated that the purchase price for the Port Elizabeth premises was R1 200 000.

 

 

AUTHORISED SHARE CAPITAL

 

R4 000 divided into 4 000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R4 000

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 3 October 2013 :

 

·         STOCK R 20 000 000

·         DEBTORS R 20 000 000

·         FIXED ASSETS R 10 000 000

·         CREDITORS fluctuates R 10 000 000

·         TURNOVER per annum R200 000 000

 

 

AUDITORS

 

WATERMAN CHARTERED ACCOUNTANTS, Woodmead


YEAR END

 

JUNE

 

 

INSURANCE BROKERS

 

DAI – TO FINANCIAL SERVICES INSURANCE BROKERS

 

 

TRADE REFERENCES – MAY 2006

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. 5 years          R 245 000 R      70 000              45 days            45 days            Very good

2. 15 years        R1 000 000        R350 000          60 days            60 days                       Excellent

3. 10 years        R 500 000         R180 000          60 days            60 days                       Excellent

 

 

TRADE REFERENCES – MARCH 2007

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 1992             R519 000          R124 000 -        60 days            60 days                        Good 

R519 000

 

2. Do not give trade references

 

3. 5-6 years       declined            R 70 000 -         45 days            45 days            Good

R 80 000

 

4. 10 years        R350 0000         R350 000          60 days            60 days            Excellent

 

 

TRADE REFERENCES – OCTOBER 2007

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. Old acc         Good for R101 000                    45 days            30/45 days        Very Good

2. 1992             R600 000          R200 000 -        60 days            60 days            Good

R600 000

3. 5 years          R255 000          R255 000          60 days            30/60 days        Very Good

EFT

TRADE REFERENCES – JANUARY 2009

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 2004             R 700 000         R700 000          30 days            30 days            Very Good

2. Old acc         R1 000 000        R100 000 -        60 days            60 days                        Very Good

R300 000

3. 5 years          declined            declined            30 days            30 days            Good

 

 

TRADE REFERENCES - MAY 2012

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 2004             R800 000          R200 000          30 days            30 days            Very Good

 

2. 10 years +     R900 000          R100 000          60 days            60 days            Very Good

 

3. Do not give trade references

 

4. Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. +10 years      R 850 000         Declined           30 days            30 days            Excellent

2. 11 years        R2 000 000        ±R1 200 000      60 days            60 days            Excellent

3. 2004             R1 000 000        R 150 000-        45 days            45 days            Excellent

R 400 000

 

 

COMMENTS

 

This is an established company meeting its commitments timeously. Suppliers speak very highly of the subject.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.78

UK Pound

1

Rs.99.06

Euro

1

Rs.83.84

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.